Why is outsourcing getting popular?

Corzhens

Member
This is not exactly a puzzle because outsourcing saves labor costs on the part of the company since outsourced personnel have no benefits. But we have to take note that loyalty is not guaranteed and in fact there are cases where outsourced workers were not performing too well simply because of their status – there is no need to work hard since they are not hired by the company.
 

Heatman

New member
It's part of the backlash of outsourcing workers, in as much as the company was looking at cutting cost by making use of outsourced services, it most times ends badly for the company especially when such workers don't care about how their actions and activities are negatively impacting on the company. It still ends up being a bad business for the comp because the management would end up covering for the lost profits and still run the cost of replacing the outsourced workers that are not willing to deliver.
 

valya

New member
  • [h=2][/h]
    • Unlike services and support, which are one-time, episodic or occasional and limited to the beginning and the end, outsourcing usually involves professional support for the smooth operation of individual systems and infrastructure on the basis of a long-term contract (at least 1 year).
 

Alexandoy

Member
I had read in the business news section of a major newspaper that outsourcing will be the standard of big companies in the future. I know what he was talking about because of the savings in cost of hiring people. An outsource has no benefits and he can be terminated any time. That is the big advantage that the big corporations are looking at right now with the advantage of outsourcing.
 

TopLink

Forum Founder
Staff member
Logistics Outsourcing has been on the rise for decades. I think with the move now to the 'gig' economy, outsourcing of other business functions will rise also.
 

Alexandoy

Member
Logistics Outsourcing has been on the rise for decades. I think with the move now to the 'gig' economy, outsourcing of other business functions will rise also.
With the mention of business functions, I know of some companies that outsource an entire unit like the internal service desk. The function of the unit is to handle the communications regarding issues particularly in the operations. Hiring 10 people is more costly in the long run and outsourcing the entire unit is more economical, according to the company president.
 

Corzhens

Member
Under my jurisdiction is an outsource that handles the installation of software on new computers. It is a temporary unit consisting of 10 technical workers. Our boss said that outsourcing a unit is more economical than hiring employees. I presume that they did some pencil pushing on the numbers that their computation yielded in favor of outsourcing.
 

TopLink

Forum Founder
Staff member
With the mention of business functions, I know of some companies that outsource an entire unit like the internal service desk. The function of the unit is to handle the communications regarding issues particularly in the operations. Hiring 10 people is more costly in the long run and outsourcing the entire unit is more economical, according to the company president.
Yes, very common here in Australia. Many customer service centres are now in the Philippines and India.
 

Corzhens

Member
Aside from the call center services which are mostly located in countries with cheap labor, outsourcing of the sales unit is also getting to be popular. My niece had worked in one agency where she does the prospecting of customers by phone and social media for the main office in the US. That’s why she was required to have an American accent.
 
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